what is the meaning of P/V Ratio?

Answer Posted / veena m.s.

P stands for Profit & V stands for Volume in PV Ratio.

SP-VC
PV Ratio= -------
SP

where SP=Selling Price
VC=Variable Cost
and

SP-VC=Contribution
Thus,
Contribution
PV Ratio= --------------
Selling Price

Is This Answer Correct ?    4 Yes 0 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

What is the definition of LOSS. Give the formula if any.

1709


3. You are required to show the effect of each of the following changes on profit and Break-Even-Volume from the information given below: Sales 50,000 units Rs. 5.00 per unit Variable cost Rs. 3.00 per unit Fixed cost Rs. 70,000 Changes: (i) Price changes by 20%. (ii) Volume decreases to 40,000 units. (iii) Variable cost increases to Rs 3.50 per unit. (iv) Fixed cost decreases by 10%.

1615


How now about sales tax and purchase tax.what is the persentage of those thing in tamil nadu.

1742


.,can someone tell me how to compute the subscribed capital share?

1830


What do u mean by pass through expenses? give examples, how it will be accounted & billed?

5472






My company's accountant use two different way to calculate Depreciation,one as per Companies Act and another rate for Income Tax calculation. Why we have to use two way to calculate it? Can we just use one way to calculate?

1645


What is DECR And for wt it is used?

1665


how to prepare the balance sheet of private ltd. company & what roll should be play by Income tax, compnay law & accounting standard in India & world.

1515


What does my credit score mean?

1495


how will i develop my fears in interviewd?

1591


please explain the uses of internate protocol address(ip add)?

1691


I have complited my ERP course in FICO module. Now I want to work in ERP package. Please suggest me how I will apply for the organisation works in ERP environment.

1463


What do you mean by Green-shoe option?

1626


For the production of 10,000 units the following are the budgeting expenses: Per Unit Rs. Direct materials 60 Direct labour 30 Variable overhead 25 Fixed overhead (Rs.1,50,000) 15 Selling expenses (10% fixed) 15 Variable expenses (direct) 5 Administrative expenses (Rs.50,000 fixed) 5 Distribution expenses (20% fixed) 5 Total cost of sales per unit 160 Prepare the flexible budget for the production of 6,000 , 7,000 ,and 8,000 units of production

2291


Expand-------ANC

1791